It is good to see a small positive sign in this equity. Even though I would not characterize this as being something to celebrate, it is positive. What it does is help to strengthen the support levels we already have. We are still waiting to hear some development about the Liberty situation, but at least we have seen what appears to be the bottom on this equity. Liberty seems to be holding strong as well. Another good development.
What we want now is to understand support levels. These may be tested. We already know the established upside ceiling at about $3.75 or so in the near term, so getting to a good support level is now the critical information we need. I would establish a moderate support level at $3.50, and another moderate level at $3.40. If the equity can get above $3.60 and stay there for a few days, we will see the support at $3.50 get stronger. When faced with a near term ceiling on the upside, it is good to see strong support below as well. Right now that is just taking shape.
Support and Resistance
Exponential Moving Averages